Last year, Hertz (OTC: HTZGQ) was delisted from the NYSE to the OTC market. The move came after it filed for bankruptcy and with the possible possibility looming that Hertz’s common stock shares will become virtually worthless and cease paying dividends, the year has been characterized by hysteria that has fueled dramatic stock price surges and crashes.
Now, Hertz may be changing it’s position. The company confirmed that it has received receipt to its revised reorganization proposal for chapter 11 exit. The company received proposals in a bidding war from affiliates of Knighthead Capital Management LLC, Certares Opportunities LLC, and Apollo Capital Management, LP to provide equity capital required to fund Hertz’s exit from Chapter 11.
This may include:
- Direct common stock investments aggregating $2.9 billion
- Direct preferred stock investments aggregating $1.5 billion and a rights offering to raise $1.36 billion
The Board of Directors of Hertz has yet to make a decision on the new plan, which will be evaluated in compliance with the Bankruptcy Court’s procedures.
Last week the company reported their earnings, here’s a snippet of what happened:
- Equipment rental revenue increased 3.6% to $400.4 million and total revenues increased 4.0% to $453.8 million
- Net income increased to $32.9 million, or $1.09 per diluted share
- Adjusted EBITDA expanded 25.0% to $184.6 million and adjusted EBITDA margin of 40.7% rose 680 basis points
- Free cash flow increased to $72.5 million
- The Company raised full year 2021 adjusted EBITDA guidance to $800 million to $840 million and maintained $400 million to $450 million for net rental equipment capital expenditures
